October 1st is celebrated by each and every Nigerian with full patriotic zeal. On this day in 1960, Nigeria gained independence from Britain and became a republic. This year, the nation celebrated its 54th independence anniversary. The country has come a long way since gaining independence from its colonial rulers.
The founding fathers of Nigeria envisioned a land of plenty where every Nigerian enjoyed a respectable quality of life. Their dream has been encapsulated in the country’s first national anthem, “Nigeria We Hail Thee”. The dream was not farfetched due to the discovery of “black gold” in the Niger delta some four years before the independence in 1956.
Road to Progress in Nigeria: An Overview
At the time of independence, Nigerians had high hopes for their country. They hoped to build a rich and developed nation where truth and justice reigned with peace and plenty.
The initial years after independence in Nigeria were not easy. The country faced civil wars during that time. This left the country in ruins. Around 1-3 million people perished during this period due to starvation, disease, and warfare.
After the end of civil war in 1966, the military took hold of the country. However, the military rule did little to improve the condition of the masses.
During military rule, 1966-1979 and 1983-1998, the country became a victim of corruption, mismanagement, and lack of development.
This led to mass scale poverty in the country that resulted in suffering of a major portion of the society.
Restoration of democracy in Nigeria resulted in 360o, put Nigeria back on track towards achieving its full economic potential. It reversed the damage done to the country due to civil war and military rule. At present, the economy of the country is in full swing with booming revenue from the oil and gas sector.
Today, Nigerians should be proud that they have come close to achieving the dream of their founding fathers. In 2104, Nigeria’s GDP became the largest in Africa and world’s 26th worth more than $500 billion. Moreover, the Debt-GDP ratio is only 11%. By 2050, Nigeria is expected to become one of the top 20 economies in the world. It is also expected to be listed among the “Next Eleven” economies set to become among the largest in the world.
Nigeria is a member of Non-Aligned Movement. It is also a member of the Commonwealth of Nations and United Nations. Moreover, the country played a major role in founding Organization for African Unity (now the African Union). It has a tremendous influence in West Africa and Africa regions of the whole.
Development of Real Estate Sector in Nigeria
There are many ways that render Nigeria to be a country where real estate investor’s dreams come true. Being Africa’s largest economy, it houses many of the world’s largest companies, the employees of which need accommodation. In addition, a growing middle class demands stores that harbor, modern goods and services.
The real estate sector in Nigeria at the present, however, is a victim of lack of development, expertise, and high building costs. There are some challenges that need to be addressed ever since its independence, but that still does not stop the country from being the perfect place for real estate investment. This is all thanks to rapid urbanization and World Bank Investment of $300M and N10Billion investment from Nigeria investors in a liquidity facility for long term mortgage finance (NMRC), its generally huge population (bigger than Russia), and the increasing middle class.
At the end of 2013, its economy was listed to have grown by 6 percent and that has not even stopped it from supplying an influx of property buyers. The investors consists of airline staff, restaurant owners, bankers etc.
Right now, the demand of middle class citizens for residential investment is huge. However, many of the projects are stopped midway because of funds that were withdrawn in the middle. Yet, the real estate sector is growing at a higher rate than 12 percent. Thus, the support of business magnates will greatly aid in preventing financial pitfalls in projects.
The statistics indicate that a successful real estate investment in Nigeria can get you returns as much as 30 to 35 percent, while the rental income in cities like Abuja rockets up to 10%.
Still, a portion of Nigerians live a life of poverty in shanty towns or in basic concrete blocks with iron sheets for roofs. While there is a massive room for improvement, the country seems to be headed in the right direction in terms of economic development.
The recent launching of 10,000 mortgages by the Federal Government as part of efforts towards realizing the objectives of the Nigerian Mortgage Refinance Corporation (NMRC) has been described as a major step towards affordable housing delivery and home-ownership in Nigeria.
The 10,000 mortgages jointly launched by the ministers of Finance, Ngozi Okonjo-Iweala, and her Lands, Housing and Urban Development counterpart, Akon Eyakenyi, is the first tranche of the 200,000 mortgages targeted for the NMRC scheme by the Federal Government.
The Central Bank of Nigeria along with other stakeholders and the Mortgage Bankers Association of Nigeria with the corporation of the mortgage Banks had a capitalization on 31st December 2013.
The Lagos State government set up The Lagos Home Ownership Mortgage Scheme (Lagos HOMS) initiative to encourage and support home ownership of First-Time Buyer (FTB) residents of Lagos State to purchase decent and affordable homes through the provision of accessible mortgage finance. Lagos HOMS is administered by the Lagos Mortgage Board (LMB).
The home ownership of First-Time Buyer (FTB) residents of Lagos State to purchase decent and affordable homes through the provision of accessible mortgage finance. Lagos HOMS is administered by the Lagos Mortgage Board (LMB) more states are now doing more for their indigenes and also help to work towards the housing deficit in Nigeria with all this reformation in the Nigeria Real Estate sector, it is safe to say Nigeria have really come far and still one of the fastest growing economy to invest.